Fiduciary financial advisor in St. Clair County, IL. For those in St. Clair County, IL who don't have the free time, expertise, or inclination to manage their investments and retirement accounts on their own, working with a financial advisor offers peace of mind. Trust is vital in that partnership, and whether you're preparing for retirement, looking to grow your wealth, or saving for your kids' education, the knowledge, skill, and integrity of your financial advisor matter greatly. By working with a fiduciary financial advisor in St. Clair County, IL, you'll gain a partner who is legally and ethically committed to put your own best interests first.
At Correct Capital Wealth Management, our St. Clair County, IL fiduciary financial advisors won't ever suggest a product, investment, or plan that we don't sincerely trust in ourselves. For financial advisors that follow the fiduciary standard and operate with your best interest at heart, call Correct Capital today at 877-930-4015, fill out our online form, or schedule a meeting with a member of our advisor team.
What Is a Fiduciary?
A fiduciary is a person or entity that holds a role of confidence and duty when overseeing assets, monetary matters, or legal matters for someone else. Fiduciaries are legally and ethically bound to work in the best interests of the person or entity they are representing, often referred to as their "principal" or "beneficiary". This duty of loyalty and duty of care is known as the fiduciary standard.
Common examples of fiduciaries are:
- Trustees — Individuals or entities tasked with handling and overseeing assets held in a trust for the advantage of beneficiaries.
- Executors — People appointed to oversee the estate and assets of a decedent as per their will or the law.
- Financial advisors — Professionals who provide financial advice and oversee investments for clients, with an obligation to put first the client's financial goals.
- Corporate directors — Members of a company's board of directors who are bound to shareholders to try and increase their profit.
- Guardians — Individuals chosen by the court to make decisions on behalf of minors or individuals who are incapable to make decisions for themselves.
- Attorneys — Lawyers who are committed by a fiduciary duty to operate in the best interests of their clients when handling their cases.
- Real estate agents — Professionals who aid clients in purchasing, selling, or renting properties and are expected to act in the best interests of their clients in real estate transactions.
Good Faith, Duty of Loyalty, and Duty of Care
There are three vital elements to understanding fiduciary duty:
1. Good Faith
Fiduciaries have an obligation to act in "good faith," which means they engage with their clients or beneficiaries truthfully, with genuine intention, and without any aim to deceive or infringe upon the interests of their beneficiaries. They must always act with integrity and with the best interests of the clients as a priority.
2. Duty of Loyalty
Fiduciaries owe a "duty of loyalty" to the client/beneficiary, which means they must prioritize the beneficiary's interests ahead of their own. They ought to avoid any conflicts of interest that could impair their ability to act solely in the beneficiary's best interests. All conflicts of interest need to be made known to the client or beneficiary and the advisor has to still act with the client/beneficiary's interest over their own.
3. Duty of Care
Fiduciaries have a "duty of care" to apply the standard of care, skill, and diligence that a prudent person would apply in the same or similar situations. They must make well-informed and careful decisions when managing assets or deciding on behalf of their client or beneficiary. This duty guarantees that they work diligently to safeguard and increase the assets within their care while reducing risks.
What Is a Fiduciary Financial Advisor in St. Clair County, IL?
Financial advisors help St. Clair County, IL individuals, families, and business owners attain their life goals by means of a variety of financial services and suggestions. These services comprise investment choices, retirement consulting, tax planning, estate planning, asset management and others.
Any person in St. Clair County, IL can call themselves a "financial advisor," but to be a fiduciary, an advisor has to have qualifications and certifications from industry organizations such as the CFP Board and Fi360. Obtaining and keeping these certifications necessitate persistent education and a stringent moral standard.
As an example, fiduciary financial advisors with a CERTIFIED FINANCIAL PLANNER™ certification need to comply with the CFP Board's Code of Ethics and Standards of Conduct to:
- Act with honesty, integrity, competence, and diligence
- Act in the client’s best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects positively on the financial planning profession and CFP® certification
Are All Financial Advisors in St. Clair County, IL Fiduciaries?
Not all financial advisor in St. Clair County, IL is fiduciaries. The main reason is that financial advisors can operate under different regulatory frameworks and compensation structures, leading to varying standards of care:
- Regulatory framework — Financial advisors can be subject to different regulatory oversight depending on their business model. For instance, Registered Investment Advisors (RIAs) are typically fiduciaries. On the other hand, some advisors (for example, those under a broker-dealer model) work under the suitability standard, which demands recommendations to be suitable for clients but does not mandate the same duties of loyalty and care.
- Compensation structure — The way financial advisors are compensated can affect their fiduciary status. Fiduciary advisors typically charge a percentage fee for their services, making their compensation clear and limiting conflicts of interest. Other advisors generally receive commissions or different kinds of compensation linked to product sales, which means you can't be sure that their recommendations are 100% for your benefit.
The Prudent-Person Rule
Fiduciary financial advisors are required to abide by the Prudent-Person Rule, also known as the prudent investor rule. The rule acknowledges that financial advisors can't predict the future or know which investments will be profitable ahead of time, but mandates that a fiduciary financial advisor select investments that a reasonable person would purchase from an acceptable risk considering the client's goals and investment objective.
The prudent person rule is an early common law principle, and was later unified with the Uniform Prudent Investor Act. Each state may apply their own specific laws. Missouri law, for example, mandates that fiduciary financial advisors must consider:
- General economic conditions
- Potential inflation or deflation
- Expected tax implications of investments
- The part that each investment or strategy plays within your portfolio
- Expected profit and appreciation of capital
- Additional assets and resources you own
- Your needs for liquidity, income, and preservation of capital
- An asset's distinctive relationship or value to you, if any
- The size and nature of your portfolio, its distribution requirements, and the anticipated duration of your relationship with the fiduciary financial advisor
Benefits of Working with a Fiduciary Financial Advisor in St. Clair County, IL
Opting to collaborate with a fiduciary financial advisor in St. Clair County, IL provides an array of benefits that can deeply impact your fiscal health:
- Fiduciary financial advisers are required to act in your best interest and adhere to ethical standards
- Total disclosure of pertinent materials and facts and complete transparency regarding matters like risks, fees, and potential conflicts of interest, allowing you to make the best decisions for you and your St. Clair County, IL family
- Handle investments on your behalf by leveraging their expertise to craft and handle a diversified portfolio that resonates with your financial goals and risk tolerance
- Thorough financial planning and a holistic approach to your financial well-being, taking into account all facets of your financial life to create a personalized approach
- Ongoing monitoring and advice to ensure your financial strategies and investments continue to be in line and that you can adjust to any curveballs the market or life throws your way
- Diminished risk with prudent and responsible investment choices done by carefully assessing the risk associated with each investment and modifying your portfolio to match your risk tolerance
- Peace of mind that your best interests are being cared for by knowledgeable financial professionals
- A lasting relationship with a fiduciary financial advisor that comprehends your financial goals change over time, and life scenarios modify
Hire Correct Capital as Your St. Clair County, IL Fiduciary Financial Advisor
Selecting a financial advisor in St. Clair County, IL with a fiduciary duty is vital to ensure your money is being put to use how you need it to be. At Correct Capital Wealth Management, we are pleased to be fiduciary financial advisors who place at the forefront the financial success and peace of mind of St. Clair County, IL residents and business owners alike. Our team includes CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals and we are a Registered Investment Advisor (RIA) with the knowledge and qualifications necessary to assist you on your financial journey. We provide all our clients our I.O.U promise: all of our advice will be independent, objective, and unbiased.
Contact us today at 877-930-4015 or contact us online to schedule an appointment and discover how we can assist you attain your financial goals in St. Clair County, IL.
